Question

Which of these BEST describes how the Smoot-Hawley Tariff Act of 1930 affected America's international trade relations?

A) It harmed America's international trade relations.
B) It eliminated America's international trade relations.
C) It improved international trade relations with old allies.
D) It caused northern industry and southern farms to flourish.

Answer 1

Because of the Smoot-Hawley Tariff Act, countries such as Canada, Great Britain, and Germany increased trade with other countries to avoid paying the high tariffs imposed by the new law. Overall, the statement that BEST describes how the Smoot-Hawley Tariff Act affected America’s international trade relations is it harmed America’s international trade relations.

Answer 2

The correct answer is statement A.

The Smoot-Hawley Tariff of 1930 resulted in an increased tax on more than 20,000 goods that were imported from other countries. The goal of this tariff was to protect American businesses and to encourage American citizens to made products made in the US. However, this actually ended up hurting the US. The countries whom they traded with responded with their own set of economic punishments (like tariffs) against the United States.